Contribution to economic growth measured by gross domestic product (GDP) — the monetary value of all goods and services produced in Australia over a single year. (In 2010, the Australian Bureau of Statistics estimated that large businesses contributed 43.9 per cent of GDP).
Contribution to employment Large-scale organisations employ large numbers of people. Large businesses provide jobs for 2.9 million people, or 29 per cent of the private sector workforce.
Many LSO’s export their products to overseas markets. Exporting products overseas contributes to Australia's balance of payments (BOP). The BOP is a record of trade and financial transactions between residents of Australia and residents of the rest of the world, over a given period of time. A favourable BOP exists when there are more payments coming in than going out. Contribution to exports
Contribution to research and development LSOs have the capacity to undertake extensive research and development(R&D). R&D is undertaken in order to improve our knowledge, and then used by business to improve existing products or create new ones. Researchers and scientists undertaking R&D in large organisations have produced many new products. Invention (developing something new) and innovation (when something that already exists is improved) are at the heart of our economy. Finding new ways to do things results in improved efficiency and increased productivity.
Contribution to infrastructure growth Infrastructure is a broad term that refers to installations such as roads, railways, communications systems, education and health facilities, and utility supplies. Most of these services are supplied by numerous LSOs, especially those that are also GBEs. The extent and quality of the infrastructure is crucial to the performance of the economy, because it assists in economic growth. Transport facilities, for example, are crucial for moving people and products, and electricity, gas and water supplies are essential to manufacturing operations. E.G. The Victorian Government announced that it will spend $9.5 billion on infrastructure.
True or false? Economic growth can be measured by GCP. Innovation is a process of following a new trend. Australia's balance of payments consists of two accounts, which balance only when there is an increase in exports. Research and development is just about getting the organisation ready, so that it is prepared for research. Infrastructure refers to highways, railways, airports and communication systems. Gross domestic product is the total amount of spending on waste disposal.
Complete the table by stating what positive contribution each of the situations makes to the economy. Some situations may make more than one contribution SituationContribution A government has announced plans to build a new freeway, using a private– public partnership. Contribution to infrastructure A large company plans to build a new power plant outside a regional town. A publicly listed company has completed new research on an innovative product. A government business enterprise has seen a dramatic increase in the volume of services it offers over the last five years. A private company earns half of its revenue from overseas.